Georgia sees delinquent loan volume decline
(MENAFN – Trend News Agency) BAKU, Azerbaijan, August 14
By Tamilla Mammadova – Trend:
The volume of overdue loans in June 2021 decreased from 100 million lari ($ 32.3 million) to 510 million lari ($ 164.9 million) compared to the previous month in Georgia, reports Trend via the Bank National Georgia.
Compared to the same period last year, it increased by 11 million lari ($ 3.5 million).
At the start of the year, the volume of non-performing loans reached 533 million lari ($ 172.3 million), or 1.37% of the total loan portfolio. During the same period last year, the NPL ratio stood at 1.44%.
The National Bank obliges commercial banks to reserve 2% of loans, which is 1.46 times more than the current rate for interest on arrears.
Despite the economic crisis, the volume of delinquent loans only increased from 0.35% to 1.48% in 2020. Since December 2017, the bad debt ratio has not exceeded 2%.
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